Charlie McCreevy

Charlie McCreevy
European Commissioner for Internal Market & Services
Incumbent
Assumed office 22 November, 2004
Preceded by	Frits Bolkestein
Personal details
Born	(1948-09-30) September 30, 1948 Sallins, Ireland
Political party	Fianna Fáil (AEN)
Profession	politician

Charles "Charlie" McCreevy, (Irish name: Cathal Mac Riabhaigh; born 30 September, 1949) is an Irish politician. He is the European Commissioner for the Internal Market and Services portfolio since 2004. He was first elected to Dáil Éireann as a Fianna Fáil TD in 1977 and held the seat in Kildare North until 2004 when he became Ireland's European Commissioner. In successive governments he served as Minister for Social Welfare (1992–1993), Minister for Tourism & Trade (1993–1994) and Minister for Finance (1997–2004).

Early life and career

Born in Sallins, County Kildare, McCreevy was educated locally at Naas CBS and at Gormanston Franciscan College. He studied Commerce at University College Dublin and went on to become a chartered accountant. Due to his modest family background (his father was a lock-keeper on the Grand Canal, a job carried on by his mother after the death of his father) his post-compulsory education was achieved through winning scholarships.

His political career began with his Kildare North victory in the 1977 landslide election and he has been re-elected at every subsequent election. Between 1979 and 1985 he was also elected as member of Kildare County Council.

Relationship with Charles Haughey

In the December 1979 Fianna Fáil leadership contest, McCreevy strongly supported the controversial Charles Haughey who narrowly won the post. However, in a time of severe budgetary difficulties for Ireland, McCreevy soon became disillusioned with the new Taoiseach and his fiscal policies. In October 1982 McCreevy launched a motion of no-confidence in the party leader, which evolved into a leadership challenge by Desmond O'Malley. In an open ballot and supported by only 21 of his 79 colleagues (known as the "Gang of 22"), the motion failed and McCreevy was temporarily expelled from the parliamentary party. In later years O'Malley was expelled from Fianna Fáil itself and formed the Progressive Democrats (PDs), espousing conservative fiscal policies. Although considered ideologically close to the PDs, and a personal friend of its erstwhile leader, Mary Harney, McCreevy chose to remain a member of Fianna Fáil, where he would eventually serve in joint FF-PD Governments.

Early ministerial career

For his first 15 years as TD, while Haughey remained leader, McCreevy remained a backbencher. In 1992, Albert Reynolds became Taoiseach and McCreevy was appointed Minister for Social Welfare. In this role, he is principally remembered for a set of 12 cost-cutting measures, collectively termed the "dirty dozen", which were mostly minor in their direct impact but provided a major political headache for his party in the 1992 General Election. In 1993 he became Minister for Tourism & Trade, which he held until the government fell in December 1994. In opposition, and under new Fianna Fáil leader Bertie Ahern, McCreevy was named to the Front Bench as Spokesman for Finance. In this role he was viewed as actively pro-enterprise, anti-spending and a key advocate for tax cuts.

Minister for Finance

In 1997, Fianna Fáil returned to power and McCreevy became Minister for Finance. His period coincided with the Celtic Tiger era which saw the rapid growth of the Irish economy. A consistent advocate of cutting taxes and spending, he then had an opportunity to implement these policies. In 1999 he announced the biggest give-away Budget in the history of the state. The dramatic cut in interest rates which preceded the joining of the Euro, combined with a tightening labour market and ax reductions led to significant increases in inflation. His 1999 budget also included individualisation measures to reduce the heavy tax wedge faced bin particular by married women who choose to work. However, couples on a similar income where one parent worked in the home would not see a similar reduction in their tax bill and following much public debate an extra tax allowance was introduced for stay-at-home spouses. It later emerged that his Tax Strategy group had advised against introducing individualisation due to reasons of cost rather than principle. The change is viewed as making a significant contribution to increased female participation in the workforce.

During his term in Finance, he made many changes to simplify the tax system and presided over Ireland's entry to Economic and Monetary Union of the European Union and later, the changeover to the Euro. In the early 2000s, when Irish economic growth fell back, he maintained strict control on growth in government spending. He maintained a significant primary surplus during his 7 years in Finance, while also implementing the tax-cutting programme, major increases in health, education and pension funding as well as increasing investment in infrastructural development to 5% of GNP. Unemployment was reduced from 10% to 4.4%. Real GDP growth across the full period represented by far the highest average of any western European country.

Frequently outspoken, McCreevy sometimes made comments that were out-of-line with his party colleagues and attracted controversy. For example, McCreevy once referred to the Irish health system as a "black hole" and reacted to the initial Irish rejection of the Nice Treaty as "a sign of a healthy democracy". He later explained this as reflecting a wake-up call to politicians and others who, like him, had expected an almost automatic Yes vote.

European Commissioner

In 2004, McCreevy was selected by the Government to replace David Byrne as Ireland's European Commissioner. He was appointed to the Internal Market and Services portfolio by President of the European Commission José Manuel Durão Barroso. At his confirmation hearings in the European Parliament MEPs described him as “fluent and relaxed” giving straightforward answers in a refreshing and engaging manner. He also informed them that he had campaigned for the ratification of every European Treaty since 1972.

He describes his approach to his portfolio is;

You will find me ready to meet, discuss, listen and argue on how best to deliver to our citizens the real benefits of an Internal Market. There are enormous challenges facing the EU in the coming period on which we all must find common ground. I want our policies to show that EU means something real and positive to the people in Europe

McCreevy's EU Services Sector Competition Directive, sets out to achieve full competition in the Services sector across the EU. This is rather difficult to implement in practical terms. It is also very unpopular politically in large countries with high unemployment rates like France, Germany and Italy. McCreevy's determination to push this through, did result in much conflict. McCreevy himself could not see why the level of competition sought in the directive needed to be compromised. McCreevy's viewpoint was that lack of competition was hurting consumers, more than any it was benefiting anybody.

His performance can be less than apt, in the interpretation of his role, in relation to those, to whom he is addressing.

Charlie McCreevy got a frosty reception from British businessmen at a dinner in London recently. Guest of honour at the Association of Corporate Treasurers’ annual dinner, attended by 1,500 financial types, McCreevy horribly misjudged his audience. British businessmen chafing at excessive EU red tape are not in the mood to hear about Brussels’ “light touch”, or that its regulations are “tip-top”, but that’s what McCreevy claimed.

Northern Rock Crisis

In October 2007 McCreevy, commenting on the Northern Rock Bank scandal, claimed that banking regulations in England which forces banks to be open to scrutiny from outside investors, caused the panic. He said that if access to the banks dealings had been restricted, then the trouble could have been avoided. http://www.rte.ie/business/2007/1026/northernrock.html

Political career

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External links

• ESRI report looks at health spending
• His Commissioner web page
• First speech to the Committee of Judicial Affairs of the European Parliament (02-02-2005).
• FFII: Charlie McCreevy and Software Patents
• Charlie McCreevy's electoral history (ElectionsIreland.org)